An Analysis Of Audit Failure Of Lixin Accounting Firm

In recent years,financial fraud incidents have come out in an endless stream.In March 30,2017,the China Securities Regulatory Commission issued a 3 billion 470 million yuan price ticket to the actual controlling owner and legal representative of the Shanghai Duolun industrial Limited by Share Ltd.This also fully embodies the implementation of the Securities Regulatory Commission,the implementation of "supervision by law,strict supervision,comprehensive supervision",the determination to optimize the capital market,but also profoundly revealed the serious maladies in the China Securities Regulatory market.In the financial fraud,CPA audit can be regarded as the main guard line,and the CPA audit has an unshirkable responsibility for the frequent financial fraud and audit failure.Therefore,it is beneficial to promote the healthy development of the capital market and effectively prevent and dissolve the audit risk by exploring the reasons for the failure of the audit and putting forward reasonable solutions.In the case of the failure of audit in recent years,the public concern has been aroused by the case of the audit failure of Shanghai great wisdom Limited by Share Ltd by Lixin Accounting firm.The main reasons are:first,great wisdom is the main business of Internet financial information services in China,to promote the healthy operation of Internet plus"Internet financial development and major research,the great wisdom of auditing failure cases to the current our country to prevent the industry and promote the audit failure of Internet financial industry.Secondly,the Lixin Accounting firm is a more well-known accounting firm in our country.The overall ranking in the national office is also relatively forward,and the scale of business,the quality of practice and the quality control can reach the higher level of the accounting firm in our country,but the CPA firm is established by the CPA firm.The failure of auditing for great wisdom has been punished for the first time in six years.It can be seen that although there is strong strength in China's firms,there are still problems in the control of audit quality,so the case study of the failure of the big wisdom of the antithesis audit can enlighten the healthy development of the CPA firms in our country.On the basis of exploring the relationship between the two parties of audit failure and audit risk and the theory of audit failure,this paper,based on the analysis of the case analysis of the "great wisdom" audit of Shanghai by the accounting firm of opposites,explores the causes of the failure of the big wisdom audit in detail.It is found that the failure of the audit wisdom of Lixin Accounting firm is mainly caused by the three aspects of the audit institutions and personnel,the audited units and the external environment.Finally,the article puts forward some suggestions from three aspects of the accounting firm and the certified public accountants,the great wisdom company itself and the social related departments.The audit work of the accounting office will help.In the light of the above reasons,the corresponding countermeasures are put forward.